Power Line Projects to Cost $2.5 Billion Estimate Declined Since Last Year but Could Grow

24 October 2009 2,004 views No Comment

American Transmission Co. is planning $2.5 billion in power line projects over the next 10 years, down slightly from the $2.7 billion forecast a year ago.

But the need to build new high-voltage power lines to import renewable power generated in the Dakotas and other windy states could boost the company’s investment, ATC said.

“While the cost estimate in our 2009 assessment is slightly less than the $2.7 billion identified in last year’s report, our 10-year capital spending may need to be increased because of increased focus on regional transmission support to move renewable generation to areas where the power is needed,” ATC said in the executive summary of its new 10-year plan.

Pewaukee-based ATC is a power line utility owned primarily by investor-owned utilities in eastern Wisconsin. It has invested $2.1 billion since 2001, including $420 million to build a power line between Wausau and Duluth, Minn.

The $2.5 billion price tag identified for the next 10 years contains $1 billion of investment in new transmission infrastructure, including 131 miles of new lines and upgrades to nearly 400 miles of existing lines. The remaining $1.5 billion is for interconnection of new-generation equipment as well as maintenance and other work.

The ATC report lists nine regional collaborative planning initiatives in which ATC is participating. Those include a study of potential new power lines from La Crosse to Madison, another in south-central or southwestern Wisconsin, and a potential north- south line near Lake Michigan in eastern Wisconsin.

A variety of studies across the Midwest and beyond are looking at ways to move power generated from the windiest areas, such as the Dakotas, Iowa and Minnesota, to population centers such as Chicago, Milwaukee and Ohio. The goal is to help boost the amount of renewable power that doesn’t produce greenhouse gas emissions.

“Now, more than ever, we are committed to an open, collaborative process to select best-value projects that resolve multiple electric system issues over a broad region,” said Flora Flygt, ATC’s director of transmission planning.

A service of YellowBrix, Inc.